TOKYO: Japan Tobacco (JT) said it planned to close its Austrian factory by early 2012 and cut related administrative staff, entering negotiations with labor union representatives toward shedding 320 jobs. “We have formalized intent to close the Hainburg factory, followed by the commencement of consultations with the local works council,” the company said in a statement issued late Thursday. Along with the plant closure, some of the Vienna-based administrative functions are also anticipated to be rationalized. The move is “for the purpose of developing the manufacturing structure with greater efficiency in the company's international tobacco business,” the company said. “Approximately a total of 320 jobs are planned to be affected by the rationalization,” it said, adding the effect of the move on its financial performance had yet to be confirmed. Production in the Hainburg factory, which makes Benson&Hedges and Memphis brands among others, is planned to cease between the end of 2011 and the beginning of 2012. Some of the manufacturing capability will be transferred to other factories in the European Union, such as to the Gostkow factory in Poland and to the Bucharest factory in Romania, the firm said. The Hainburg closure will bring the number of factories in JT's international tobacco business to 28.
